Pan-European logistics developer VGP, and investment manager Deka Immobilien, have inked the second closing between VGP and their 50:50 joint venture, Red.
The transaction comprises two logistics buildings and a multi-storey car park which were developed in parks that have already transferred to the joint venture in the first closing. At the time of the first closing these assets were still under construction.
The two buildings are located in VGP Park Giessen Am Alten Flughafen and VGP Park Berlin – Oberkrämer and are fully leased to Zalando (Giessen), Toussaint and BTG International Spedition (Oberkrämer).
The transaction with Red will be the second closing out of a pre-agreed series of three, in which the full portfolio of 20 buildings will be transferred to the joint venture.
The pricing of the full portfolio was pre-agreed at the time of the initial closing. This transaction consists of €281 mln of gross asset value and with the transaction VGP will generate €203 mln in net cash proceeds.
Following the completion of this second closing of the Red joint venture, the Red joint venture’s property portfolio will consist of 19 completed buildings representing around 785,000 m2 of lettable area with a 100% occupancy rate.
The third and final closing for the joint venture is foreseen in the second half of 2024. This closing will contain one building which is currently under construction. Upon this third transaction the Red Joint Venture will be fully invested.
